Economy February 23, 2026

UK government says Trump’s 15% global tariff unlikely to hit most of UK-US trade

Downing Street signals talks with Washington will continue as ministers seek clarity after U.S. reimposes levies

By Priya Menon
UK government says Trump’s 15% global tariff unlikely to hit most of UK-US trade

The UK government does not expect U.S. President Donald Trump’s newly announced 15% global tariff to affect the majority of trade covered by last year’s UK-U.S. economic agreement, Prime Minister Keir Starmer’s spokesman said. British and U.S. officials are set to continue discussions this week after the U.S. Supreme Court struck down previous tariff measures and Trump responded with broad new levies. The government has highlighted potential uncertainty for businesses while refusing to rule out retaliatory measures.

Key Points

  • UK officials say Trump’s 15% global tariff is not expected to affect the majority of trade covered by the UK-U.S. economic deal.
  • Trade minister Peter Kyle spoke with U.S. trade representative Jamieson Greer to communicate UK business concerns; further talks are expected this week.
  • Sectors explicitly cited as covered by the deal include steel, pharmaceuticals and cars, and a negotiated reciprocal tariff rate of 10% had been part of last year’s agreement.

LONDON, Feb 23 - The UK does not anticipate that U.S. President Donald Trump’s newly announced 15% global tariff will affect the bulk of the bilateral economic deal agreed with the United States last year, a spokesman for Prime Minister Keir Starmer said on Monday.

The spokesman said Britain’s trade minister, Peter Kyle, had held a conversation with Jamieson Greer, the U.S. trade representative, to raise concerns about the uncertainty the announcement could create for businesses operating between the two countries.

The statement followed a U.S. Supreme Court decision on Friday that struck down prior elements of Trump’s global tariffs and a subsequent move by the U.S. president to reintroduce levies across the board. The spokesman noted that Starmer’s government had previously negotiated a lower reciprocal tariff level of 10% as part of the deal reached with the U.S. last year, and that Trump’s stated intent to impose a 15% tariff could expose some firms to higher duties than those agreed.

Officials expect talks between British and U.S. counterparts to continue this week as they seek further clarification, the spokesman added, and he did not rule out the possibility of retaliatory duties. "We don’t expect this ruling to impact the majority of trade" under the UK-U.S. economic deal, he said, specifically citing tariffs agreed on steel, pharmaceuticals and cars.

Analysis from the think tank Global Trade Alert was cited by the spokesman, indicating that Britain will be among the countries most affected by the U.S. announcement, while Brazil, China and India are assessed as the largest potential beneficiaries from the change in U.S. tariff policy.

The spokesman also said that businesses did not want "to see a trade war", but added that "nothing is off the table at this stage" as ministers consider their options.


For sectors focused on tangible production and supply-chain dynamics, the dispute highlights immediate areas of attention. Steel, pharmaceuticals and autos were specifically mentioned as covered by tariff commitments in the bilateral agreement, and firms in those industries will be watching the ongoing discussions closely for confirmation that agreed duties remain in place.

Risks

  • Businesses could face higher duties if the U.S. moves forward with a 15% global tariff, creating uncertainty for sectors such as steel, pharmaceuticals and autos.
  • Britain is identified by Global Trade Alert as among the countries most impacted by the U.S. announcement, raising risk of trade disruption for UK exporters and importers.
  • The government has not ruled out retaliatory tariffs, leaving open the possibility of escalation that could affect cross-border supply chains and trade-dependent industries.

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